Deaisen
(Bullish Meeting Lines) |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 2nd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Deaisen (Bullish Meeting Lines) pattern is an highly reliable reversal signal.
It is also known as a Gyakushu (Counter Attack Lines).
Deaisen (Bullish Meeting Lines) pattern can be identified when
the market gaps sharply lower when it opens and then closes at the same level as the prior candlestick's close.
PATTERN RECOGNITION
1. Deaisen (Bullish Meeting Lines) pattern can be identified by a downtrend followed by a bottom reversal.
2. Refering to above diagram, firstly we will see a bearish candlestick then the second candlestick open with a gap down.
3. The opening price for the second candlestick should be a full range below the previous candlestick but it is an uptrend which form a (Bullish Marubozu). Both first and second candlestick body should be of equal length. The closing price of both candlesticks are almost at the same level.
EXPLAINATION
The Deaisen (Bullish Meeting Lines) pattern is formed at the bottom of an downtrend.
The first candlestick is a long bearish candlestick. But the next candlestick open sharply lower which caused the bear to feel confident.
Then the bull start a counterattack by pushing the prices up which closes is the same as the previous candlestick. That shows the bear lose its strength.
The Bullish Piercing pattern is a more significant bottom reversal.
Nevetheless, the Deaisen (Bullish Meeting Lines) pattern is still a reliable bottom reversal pattern.
The 2nd grade reversal patterns are reliable group of reversal patterns.
POINT TO NOTE
Refering to above diagram, the Deaisen (Bullish Meeting Lines) pattern is similar to the Bullish Piercing pattern.
The only difference is the bullish counterattack doest not push the prices up into the previous bearish candlestick real body.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
